Use Climate Scenarios, Not Climate Slogans
Use the TCFD structure to turn one climate concern into a pension fund risk question.
A pension fund does not manage climate risk by stating a belief. It manages climate risk by asking what changes under a plausible climate pathway. The TCFD discipline TCFD's four-part structure is a practical way to keep climate work from becoming decorative. Governance asks who oversees the risk. Strategy asks which climate pathways could change asset allocation, funding, sponsor covenant, or liquidity needs. Risk management asks how the risk is identified, assessed, and integrated into manager oversight. Metrics and targets ask what the fund tracks and what action follows. The mechanism is integration. Climate risk becomes real when it shows…
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